Greg Reese

The New York Real Estate News reported that the marketplace where lenders sell mortgages on office buildings, rental properties and other types of commercial real estate has ground to a halt as traders try to figure out how to price in risk amid the COVID-19 pandemic. Possible Impact to Real Estate 1031 Exchanges We are already seeing lenders putting the brakes on writing new … [Read more...] about 1031 Exchanges Threatened as Commercial Lenders Halt Loan Applications – Deferred Sales Trusts the Solution

In previous articles, we have discussed how the Deferred Sales Trust (DST) is a specialized form of Installment Sale under IRC 453.  Under an installment sale to a DST Trust, the entire course of the transaction and its continued operation revolves around a secured installment note in favor of the Seller. The term ‘secured’ means that all of the assets held by the Trust … [Read more...] about How are DST Funds Protected?

Generally, the terms of note will be Seller driven and the resulting terms must be reasonable and commercially viable.  The initial term we would offer would be anywhere from 1 year to 10 years… Seller picks their desired term. The payback structure is very flexible in that the seller could:  defer receiving payments for up to a couple of years or so; take a partial or full … [Read more...] about How Do You Structure Repayment Terms for a Deferred Sales Trust Installment Note